Handbook of Media Economics, vol 1A

At the local level, prior to 1992 a broadcaster was allowed to own at most one AM

station and one FM station, even in the largest markets where there might be 50 or more

local stations. The 1992 reform relaxed these restrictions so that three stations (with at

most two on one band) could be owned in markets with less than 14 stations, and up

to four stations in larger markets (as long as they had a combined audience share of less

than 25%). The 1996 Act relaxed the rules so that firms could own five stations where

three could be owned before, and up to eight stations in larger markets.

The 1996 Act was followed by a tidal wave of consolidation, with 4000 stations (out

of 11,000) changing hands within 2 years and concentration increasing rapidly